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Redistribution and development in Latin America: A quantile regression approach

Author

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  • Oscar Claveria

    (AQR-IREA, University of Barcelona, Spain.)

Abstract

This study examines the relationship between redistributive efforts and human development in 12 Latin American countries over the period 2000–2021. With the aim of evaluating the link between both variables throughout the distribution the analysis is based on quantile regression. Overall, the results suggest that greater redistribution is associated with higher development. This result holds for all ranges of the distribution and is robust to different specifications. The analysis of the redistributive effect of taxes and government transfers is extended to the different dimensions of development —health, education and economy—, finding that education is the component that is most significantly affected by increases in redistribution. Positive coefficients are also obtained for the other two components, although they are only significant at the centre of the distribution in the case of life expectancy, and at high levels of per capita income.

Suggested Citation

  • Oscar Claveria, 2024. "Redistribution and development in Latin America: A quantile regression approach," IREA Working Papers 202417, University of Barcelona, Research Institute of Applied Economics, revised Dec 2024.
    • Handle: RePEc:ira:wpaper:202417
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    File URL: http://www.ub.edu/irea/working_papers/2024/202417.pdf
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    More about this item

    Keywords

    income inequality; redistributive policy; taxes; government transfers; human development. JEL classification: C50; D30; E62; H50.;
    All these keywords.

    JEL classification:

    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • D30 - Microeconomics - - Distribution - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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